Local bias rewards investors
Australian investors are being rewarded for their attraction to domestic equities, according to a new analysis released by PennyWise Investments.
The latest PennyWise Investments Assetmax ETF report said the reward for sticking close to home had been that the ASX200 had outperformed global markets in recent months, rising 5.9 per cent in September, compared to only 2.9 per cent for the world MSCI equity index benchmark.
PennyWise Investment founder and managing director David Bassanese said investors needed to be aware that international exchange traded funds (ETFs) listed on the Australian market were priced in Australian dollars, meaning local investors bore the currency risk of the foreign markets they invested in.
He said Australia’s ability to dodge recession had impressed the world, driving up the Australian dollar and allowing local stocks to outperform their global peers.
“And with local interest rates expected to increase again in coming months, it's likely the Australian dollar will rise further,” Bassanese said.
AUTHOR
Mike Taylor
Recommended for you
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
Private market secondaries manager Coller Capital has unveiled a new education platform to improve advisers’ and investors’ understanding of secondaries.
